Uniphar ends 2019 in line with expectations

Pharmaceutical and medical technology services company Uniphar updated the market on its trading in 2019 on Tuesday, reporting that it performed in line with its own expectations for the full year at both a gross profit and EBITDA level.

The AIM-traded firm said it achieved gross profit organic growth of 7% for the year ended 31 December, with gross profit growth across all three divisions in line with expectations.

Throughout 2019, Uniphar said it continued to deliver on its growth strategy of meeting the needs of speciality manufacturers through the provision of higher value services, with the commercial and clinical, and product access divisions delivering over half of its gross profit.

“Looking forward into 2020, Uniphar is well positioned to deliver continued organic growth across all divisions, in line with its medium-term outlook, with the additional benefit of the full year impact of recent bolt-on acquisitions,” the board said in its statement.

In the commercial and clinical division, the company said it made positive progress in its strategy of growing a pan-European presence with its entry into the Nordics, as it acquired EPS Group in the fourth quarter.

The board said the benefit of that broader platform was crystallising through leveraging existing relationships into new geographies.

It said it was targeting mid-single digit organic growth in gross profit for the division in 2020.

In the product access operation, Uniphar said its acquisition of Durbin in the third quarter gave it the capability to provide product access solutions to more than 160 markets globally, in line with its strategy of becoming a “leading global player” in that market.

The integration of Durbin was said to be progressing well, and in line with expectations.

Uniphar said it was targeting double digit organic growth in gross profit in that division in 2020.

Looking at its supply chain and retail division, the board said it delivered a “good” performance as it continued to steadily grow its market share in Ireland.

The group was targeting low single digit organic growth in gross profit in that operation in 2020.

“Our trading update reflects a strong performance for 2019 in line with Group expectations and positions us to deliver our plan for 2020 consistent with our medium term outlook,” said group chief executive officer Ger Rabbette.

“We are delivering on our committed strategy in our growth divisions.”

Rabbette said that strategy included growing a pan-European platform in commercial and clinical, where it was now present in the Nordics as well as Ireland, UK and the Benelux.

It also featured the development of a global platform in its product access division, which was now in place following the acquisition of Durbin.

“Our product access, and commercial and clinical divisions continue to be the key growth engines for the group, particularly in the UK, Benelux and Nordics markets, while supply chain and Retail saw strong volume and gross profit growth in Ireland.

“We are well positioned going into 2020 for the next stage of our planned development in delivering our five-year strategy of doubling EBITDA.

“Additionally, we look forward to declaring a dividend for our shareholders."

Uniphar said it expected to publish its final results for the year ended 31 December on 27 March.